This week in Hospitality & Tourism #9 2023

AHLA: Hotels continue to recover in 2023

The hotel industry in 2023 is projected to surpass pre-pandemic levels of demand, nominal room revenue and state and local tax revenue, while inching closer to other key 2019 performance metrics, according to the American Hotel & Lodging Association’s 2023 State of the Hotel Industry Report.

The top findings of the report:

• 2023 nominal room revenue is projected to reach new heights ($197.48 billion vs. $170.35 billion in 2019). While these numbers are not adjusted for inflation, and real revenue recovery will likely take several more years, the trendlines are positive.
• 2023 room-night demand is projected to surpass pre-pandemic levels (1.3 billion occupied room nights vs. 1.29 billion in 2019).
• Hotels are expected to generate $46.71 billion in state and local tax revenue in 2023, up from $41.11 billion in 2019.

STR: U.S. hotel results for week ending 25 February

U.S. hotel performance increased from the previous week, according to STR‘s latest data through 25 February.

• The U.S. weekly occupancy level was the highest since the week ending 12 November 2022.
• Among the Top 25 Markets, Orlando saw the highest occupancy increase over 2019 (+6.2% to 86.9%).
• Las Vegas reported the highest ADR (+49.5% to US$186.96) and RevPAR (+51.8% to US$148.61) increases over 2019.
• The steepest RevPAR declines from 2019 were seen in San Francisco (-43.5% to US$105.65) and Minneapolis (-22.2% to US$52.42).

19-25 Feb 2023 (percentage change from comparable week in 2019):

• Occupancy: 64.2% (-1.5%)
• Average daily rate (ADR): US$156.51 (+22.2%)
• Revenue per available room (RevPAR): US$100.43 (+20.3%)